CMS mulls $375M pay cut to home health agencies next year

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CMS issued a proposal Friday to cut reimbursements to home health providers by 2.2% next year, or an estimated $375 million less than 2023 levels.



On June 30, 2023, the Centers for Medicare & Medicaid Services (CMS) proposed a 2.2% cut to Medicare home health payments in 2024. This would amount to a loss of $375 million for home health agencies. The proposed cut is due to a number of factors, including the implementation of the Patient-Driven Groupings Model (PDGM), which is a new payment system for home health services.


The PDGM is designed to better align payments with the cost of providing home health services. However, some home health agencies have argued that the PDGM is not adequately compensating them for the services they provide. They have also said that the proposed cut will make it more difficult for them to provide quality care to Medicare beneficiaries.



The CMS is currently accepting public comments on the proposed cut. The agency will make a final decision on the cut in the fall of 2023.


Here are some of the potential impacts of the proposed cut:

  • Home health agencies may have to reduce the number of patients they serve.
  • Home health agencies may have to lay off staff.
  • Home health patients may have to wait longer for services.
  • The quality of home health care may decline.
      • The proposed cut is a cause for concern for many people who rely on home health services. It is important to stay informed about the latest developments and to contact your elected officials if you are concerned about the impact of the cut.

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